Clothing Manufacturer for Icelandic Brands

No, not on the tariff we read: Iceland charges no customs duty on knitted apparel, whatever the country of origin. Iceland sets its own tariff outside the EU customs union, so the EU's Everything But Arms scheme plays no part here. In the 2022 English edition of the tariff published by Iceland Revenue and Customs, the knitted apparel headings of Chapter 61 carry 0 in Column A, the general rate that applies to all imported goods unless Column E provides otherwise. The US International Trade Administration's country guide, dated 1 April 2026, says the same thing directly: Iceland eliminated tariffs on consumer goods including clothing in 2016 and 2017. Confirm the commodity code for each style with your broker or Iceland Revenue and Customs before you price a range, because the edition we read is dated 2022. Zero duty is not zero tax, either: VSK still applies at import. We state the duty position for your order in writing.

24%, Iceland's standard rate, charged at import on the customs value plus any duty. Iceland Revenue and Customs states that the importation of goods is taxable and that VAT is payable at the time of importation by the owner of the goods. The reduced 11% rate covers things like food and books, not clothing. The base is set in law: Article 34 of the VAT Act, No. 50/1988, charges import VAT on the customs value plus duty and other charges, and Article 15 of the Customs Act, No. 88/2005, puts freight, handling and insurance to the Icelandic port inside the customs value. On 500 tees at a US$6.00 customs value each, freight to Reykjavík included, US$3,000 in total, that is about US$720, with nothing added for duty. Because the owner of the goods pays it, tell us at quote stage whether your company is VSK-registered and whose name the entry should carry; a registered importer recovers it in the normal way.

Yes: our minimum is 150 pieces per style and per colour, and it suits a small home market. Each colour counts on its own because it is dyed as a separate lot at a partner mill. In Icelandic numbers, one tee in two colours is 300 pieces; at the US$6.00 customs value in our worked example that is US$1,800, with no duty and about US$432 in VSK at 24%, all inside one DDP price. For a first range in Iceland, one or two core styles in the colours you are surest of usually make more sense than many colours at 150 each, because the stock has to sell through a small market before a reorder. Our MOQ calculator models styles, colours and an editable size split, so you can test a tee and hoodie range before you ask for a quote. The wider case for small runs is on our low-MOQ page.

We ship there. Collective Studio makes clothing for Icelandic brands on its own cut-and-sew floor in Narayanganj, Bangladesh, and delivers it DDP to an address in Iceland; we have no production in Iceland. Reykjavík keeps UTC all year and Bangladesh Standard Time is UTC+6, so we are six hours ahead of Reykjavík: our floor's afternoon falls in your morning, and our Amsterdam office covers European hours. If made in Iceland is central to your brand story, you need a maker in Iceland. If made in Europe is, our own comparison on this page points to Portugal, where the leg to a hub is shortest and the unit cost highest. If what you need is cut-and-sew knitwear from 150 pieces per style and colour, that is the job we do. Iceland is in the European Economic Area but outside the EU customs union, so we work out your duty and VSK under Icelandic rules and your fibre labels under the EEA ones.

Through a northern European hub. There is no direct sailing from Chattogram, so the container travels via Suez to Rotterdam or Hamburg and transships onto a feeder service into Sundahöfn, and we plan and price that whole chain rather than hand you a port. The Icelandic leg runs on an Eimskip or Samskip service. Keflavík handles air freight in days if a launch date is tight. Our DDP price covers the ocean freight to the hub, the transshipment, the feeder leg into Reykjavík, the Icelandic customs entry and the 24% VSK, and it ends at your address rather than at the quay. If your stock goes to a shop or warehouse outside Reykjavík, give us that address at quote stage so the final delivery is priced in. Before the goods move, we send you the commercial invoice and packing list. We confirm the transit with the quote, because schedules and the Red Sea routing both move.

Icelandic and English is the safe default, but the language requirement is set nationally and varies by product category, so confirm it before labels are sewn. Practice in Iceland is Icelandic, English or another Nordic language depending on the category; your retailer and Neytendastofa, the consumer agency, can tell you what yours needs. The fibre-composition rules are fixed, and they are the EU's. Iceland is in the European Economic Area, and Regulation (EU) No 1007/2011 on textile fibre names was incorporated by Joint Committee Decision 158/2012, applying to the EEA EFTA states since 1 May 2013. That means every fibre by its generic name and percentage, in descending order, on a durable, legible label. We sew whatever language combination you specify, and for a range sold to residents and visitors alike, one Icelandic and English label lets a single stock serve both.

No: Iceland's zero duty on knitted apparel is its general tariff rate for goods from any origin, not a preference for least developed countries, so Bangladesh's change of status does not touch it. Unlike the EU, where zero duty on our goods rests on Everything But Arms, which Regulation (EU) 2026/1395 keeps for three years after graduation, Iceland has no preference to lose. The UN has set Bangladesh's graduation for 24 November 2029, after granting a three-year extension on 29 October 2026 (UN LDC portal). For an Icelandic brand, that means a multi-year range planned without a duty cliff: a reorder after graduation meets the same Column A rate as your first run. What could still move is Iceland's own tariff, which it sets for every origin alike, and the VSK rate. Our graduation guide covers the markets where graduation does matter.

No, we do not make Icelandic wool sweaters: our floor cuts and sews cotton and cotton-blend jersey, French terry and fleece into tees, polos, hoodies, sweatshirts, joggers, shorts, activewear and loungewear. Traditional Icelandic wool knitwear belongs to the people who make it, and a lopapeysa is not a garment to outsource to Bangladesh. Sweaters knitted from yarn are not made on our floor; our knitwear page explains the difference, and we place flat-knit pieces with vetted partner units on a limited basis, on a separate quote. If your range mixes both, make the wool at home and let us handle the cotton basics that sit beside it. We sew their labels in the same language combination you use on the wool pieces, each with its own fibre composition, and they arrive DDP under one landed price. If the cotton beside your wool needs to be organic, we offer organic cotton, made in our GOTS-certified facility (RSC 9687), and the scope certificate is available on request.

No EORI number is needed. Ísland.is, the government's service portal, states that EORI numbers are not used for customs clearance in Iceland, so a brand that already imports into the EU does not carry its EU number across. What matters is whose name the customs entry carries. If it is your company's and you are registered for VSK, you can use Customs Credit: VAT-registered companies and individuals may defer VSK, customs duties and other import charges, which are added up and paid in two-month periods once whoever files your declarations charges them to that account, so charges for January and February fall due on 15 March. On a DDP order we arrange the clearance and the VSK sits inside your quote, so the credit matters mostly once you clear later shipments in your own name. Tell us at quote stage which way you want to work, and we prepare the commercial invoice and packing list to suit.

A customs declaration, lodged with Iceland Revenue and Customs before or on the arrival of the goods. Ísland.is says declarations are filed electronically, through the web customs clearance service or from business software, with no more than 12 paper declarations a year, and that importers should have invoices, certificates of origin and all required documents and permits ready before the shipment arrives. HS codes must be stated correctly on the invoices, so our commercial invoice gives the Chapter 61 code for each style next to its fibre composition, quantity and customs value. Because Column A is zero whatever the origin, there is no preferential rate to claim, though the declaration still names Bangladesh as the country of origin. The importer may appoint a customs broker to handle the declaration; on a DDP order we arrange that as part of our service. We send the invoice and packing list before the goods leave Chattogram.